Global X is a leading player in the ETF industry with more than 100 staff and $40 billion in AUM – up from $30 billion in April 2021 and $20 billion in December 2020. For more than a decade, the firm’s mission has been to “empower investors worldwide with unexplored and intelligent solutions.”
The firm is known for its pioneering Thematic Growth suite, comprising 32 targeted investment products, and its unparalleled research-driven approach to theme identification. However, its offering extends beyond that to include ETFs across Income, Risk Management, International Access and Commodities, all together creating outcome-oriented solutions that help investors solve challenges within their portfolios. Some investors may be searching for yield in a low interest rate environment, for example, or trying to elevate growth opportunities in a slowing economy. Others may want to precisely manage exposures across various commodities and geographies.
“Our goal is to offer investors something beyond ordinary,” says Luis Berruga, CEO of Global X. “This is reflected in our actively-managed ETFs such as the Global X China Innovation ETF (KEJI) and our suite of ETFs that incorporate options strategies, such as covered calls and collars, which could potentially enhance returns.”
A covered call strategy is used to boost income when investors expect stock prices are unlikely to rise much further in the near term. The Global X Nasdaq 100 Covered Call ETF (QYLD) buys the stocks in the Nasdaq100® Index (NDX®) and sells corresponding call options on the same index. Similarly, the Global X Nasdaq 100 Covered Call & Growth ETF (QYLG) buys the stocks in the Nasdaq-100 Index and sells corresponding call options on about 50% of the value of the portfolio of stocks in the same index.
The Nasdaq 100 Collar 95-110 ETF (QCLR) deploys a collar options strategy for investors seeking range-bound equity returns. It seeks to achieve this outcome by owning the stocks in the NDX, while buying 5% out-of-the-money put options on NDX and selling 10% out-of-the-money call options on the same index. Essentially, the sale of the call options funds the purchase of the put options.
The Global X Nasdaq 100 Risk Managed Income ETF (QRMI) employs a protective net-credit collar strategy. This is for investors seeking the income characteristics of a covered call fund, while mitigating the risks of a major market selloff with a protective put. QRMI seeks to achieve this outcome by owning the stocks in the NDX, while buying 5% out-of-the-money put options on NDX and selling at-the-money call options on the same index.
The Global X Nasdaq 100 Tail Risk ETF (QTR) employs a protective put strategy for investors seeking to buffer against market selloffs. QTR seeks to achieve this outcome by owning the stocks in the NDX, coupled with buying 10% out-of-the-money put options on the NDX.
Further, Global X’s model portfolio allows investors to incorporate thematic and alternative income strategies in diversified portfolios. It also helps financial advisors scale their business by partnering with Global X on asset allocation decisions.
Over the past several years, the firm has scaled its infrastructure, research and global presence, and its future growth plans include building on that foundation. Through its relationship with parent company Mirae Asset, Global X has already expanded its reach to Asia, Latin America and Europe.
“New companies in every corner of the globe are disrupting traditional business models, and Global X is uniquely positioned to identify and analyze them,” says Berruga. “We can leverage our industry-leading research team, as well as Mirae Asset’s global presence and access to more than 250 investment professionals in developed and emerging markets including China, India, Brazil, Korea and Vietnam.”
According to Berruga, Global X’s success is rooted in a culture that encourages entrepreneurship, innovation, positivity, passion, professionalism and teamwork as well as top-quality client service. He also stresses that Nasdaq has been a valuable partner along the journey.
“Nasdaq has given our firm visibility– from the thrill of a bell ringing broadcast around the world to seeing our funds on the Times Square billboard,” he says. “Even more important is Nasdaq’s support behind the scenes, ensuring that every day Global X ETFs trade in an orderly fashion, and investors can trade in or out of our products efficiently.”
Some securities in QYLD include:
Apple (AAPL), Adobe (ADBE), Kraft Heinz (KHC), Intuit (INTU), Lululemon (LULU)
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